TIBCO Software is a leading provider of infrastructure software, with its origins in providing a real-time information bus that has enabled operations such as Wall Street trading floors to integrate systems and data to provide the real-time flow of stock quotes and news.
TIBCO has accelerated its growth rate and significantly expanded its market by growing its stack of software to broaden the number of vertical markets that are addressed. It is also adding layers of technology that enable TIBCO to expand beyond the IT department to line-of-business managers who see the benefits for operational decision making and expanding its platform to attach to fast-growth emerging industry opportunities including social enterprise, master data management, big data, and cloud computing.
TIBCO competes against much larger rivals including IBM and Oracle, but the company tends to focus on the complex, real-time integration needs of the higher end of the market. The average software license fee is about $600,000.
Around 60% of TIBCO’s revenues are from the core infrastructure business – TIBCO SOA Products. The balance is shared between Business Optimization Products and Business Process Management Products. There is a transition taking place with a maturing core SOA business offset by faster growth from new products.
TIBCO’s newer products are complementary to the older SOA products and there is a growing attachment of the newer product that can pull along sales of the older infrastructure products to deliver a complete platform or suite solution. In the Software Industry, complementary products can be integrated to make it easier for the users. To the software vendor, there is the economic benefit associated with the leverage in selling complementary products as part of a complete integrated platform or cross selling complementary new products into an existing user base.
TIBCO new products mark entry into new markets that go beyond its traditional focus on the IT department, expanding to address the needs of the chief marketing officer and other decision makers and addressing needs such as big data integration and analysis, integration of apps and data in the cloud, and leveraging social networking to connect not just people but systems and data.
